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Blackest Friday for DStreet, investor wealth on BSE down by 5.53 lakh crores

prasad1

Gold Member
Gold Member
Do you think it is a hype perpetuated by Media?


• Global Equities crashed as did Indian equity markets.
• Coronavirus or Covid-19 fears engulf equity markets. Several organizations restrain employee travel.
• Currencies turn volatile. Indian Rupee slips against the US-Dollar.
• Weaker Rupee makes Smartphones, Gold, Cars and imported items expensive. Overall, not good for global and Indian economy.

When the Friday trading session commenced on Dalal Street there was hope in the air for paring losses from the previous trading sessions - investor wealth of nearly Rs 11 lakh crores was already lost in the past six trading sessions.

Fifteen minutes past 9:30, the trends were clear - Friday was fast turning into one of the most blackest sessions the markets would witness. The investor value or market-capitalisation was down by almost Rs 5 lakh crores within minutes on the Bombay Stock Exchange. That, for an index which boasts of a total market capitalisation of Rs 152 lakh crores (as on Thursday).

At end of trading hours, the BSE Sensex, the thirty scrip benchmark index crashed by 1448.37 points or 3.64 percent while the broader Nifty50, the 50 scrip sensitive index, was left rattled at 11,201.75, down by 431.55 points or 3.71 percent.

With this, investor wealth on BSE listed companies is down by Rs 5.53 lakh crores. The latest data available on the BSE website says the total market-capitalisation on Friday was Rs 1,46,87,010.42 crores.

The session on Friday will be remembered as the 'Blackest Friday' that eroded lakhs of crores of investments. Previously, the trading session on October 24, 2008 was the most damaging Friday with the BSE Sensex down by 1,070 points [2008 Financial Crisis].

The fall on Friday has been attributed to the Coronavirus that left several dead worldwide.

The fear has engulfed global investors, bankers and economists alike. "Anyone who has a better idea for what lies ahead please let us know because right now the direction ahead for the economy is straight down", Chris Rupkey, chief financial economist at MUFG Union Bank, was quoted as saying in a research note.


Goldman Sachs' David Kostin warned that American businesses will generate zero earnings growth in 2020 if Covid-19 virus becomes widespread. The bank had earlier predicted a 5.5 per cent growth path.

S Hariharan - Head - Sales Trading, Emkay Global Financial Services: "Alongside an expansion in global impact from nCoV, foreign flow has turned significantly negative this week. Foreign institutions have sold a net $1.5 bn worth stock in the first four sessions this week – besides another $1.2 bn in single stock futures and $500 mn in index futures. In sum, their positioning has turned significantly bearish – their net short position in index futures is now the most bearish in data going back to 2014 (barring a single session in Aug 2019), while their net long position in single stock futures is the smallest since Jun 2019. Globally too, risk-off sentiment is reflected in a strong rally in US treasuries and 10% drop in crude oil prices."

Sanjeev Zarbade, VP PCG Research, Kotak Securities: "The BSE-30 Index declined 6.5% in the current week. Global markets fell even more with Dow Jones and Nasdaq falling 11%, one of the sharpest cuts in several years. Markets feared the rapid outbreak of COVID-19 across the geographies and the consequent economic fallout. ONGC, Reliance Industries and Maruti Suzuki were among the top losers in the BSE-30 Index, while State Bank of India was one of the few stocks that held its ground. Today, the third quarter GDP data is scheduled to be announced. FPIs sold equities worth US$635 mn over the past five trading sessions while DIIs bought US$132 mn worth of equities in the same period."

Santosh Meena, Senior Analyst, TradingBells:It is a brutal fall on Dalal street on the back of mayhem in global markets amid rising worries of Coronavirus. The momentum of new cases in China is coming down but the number of cases outside China are rising sharply. Equity markets are falling sharply as fear of recession is rising where investors are looking for safe-haven instruments like Yen, US bonds and Gold.

"It is still difficult to predict the extent and impact of Coronavirus but the equity markets are in critical condition and they are looking for some positive triggers on the front of Coronavirus for any kind of respite. Technically, 11200-11100 is a sacrosanct support area for the Nifty and there is a good chance that Nifty may stabilize here and bounce back towards 11700 level.

 

krish44

Gold Member
Gold Member
The reports of stock market tumbling and waiting to crash further is misplaced.

Some big hands in algorithmic trading are off loading in bulk sending index down.

They may again buy blue chips when the prices are down.

Oil prices are going down .

corona virus in china is opening up oppurtunities for india.

Good shares are becoming available at lower rates.

Only worrisome issue is inflation for india.

Growth projections are to be taken with a pinch of salt.

GDP growth may be as low as 2%

Most are shifting to gold from equities .

Most industries have cut down on production..

I think that demonetisation started the downward slide

Day traders will do well.

Retail investors might stay away from market.

This phase will pass .

Banking reforms are causing a lot of pain.

Yes bank muddle after PMC crash is reflecting poorly on govt"s management of economy.
 
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